Pay for a car cash or take a loan out?

roswell

I guess it depends on how you want to look at it, You could say in 3 years I spent £7K savings on a car that now only worth £3 K or you could borrow £7K pay back £7700 (im surprised you can get finiance so cheap) and still have a car only worth £3k,

I guess that your employment at present is secure but will it be over the next 3 years ? Worst thing you want is to say " I Borrowed £7K i still owe £5 K and this car is only worth £3500, i dont have a income and being chased for the monthly payments"

Personnaly I would spend the savings, you know then that the car is yours what ever you sell it for in the future is yours, Keep up the savings and you will soon build that nest egg up again plus more,

The other thing to look at is if you loose your job they will take into account your savings for any benifits .. it would be sad to be in debt and have to live off your savings and in 3 years have £0 in the bank and a reposessed car.

Either way if you take a loan or pay cash the car will never be worth more than what you pay for it, so really you dont want to be loosing money to devaluation and paying interest for the pleasure.